Meanwhile, the BSE Sensex was up 159.32 points, or 0.82%, to 19,586.03.
On BSE, 31.10 lakh shares were traded in the counter as against an average daily volume of 55.13 lakh shares in the past one quarter.
The stock hit a high of Rs 15.27 and a low of Rs 14.18 so far during the day. The stock had hit a record low of Rs 7.01 on 13 August 2012. The stock had hit a 52-week high of Rs 30.90 on 7 February 2012.
The stock had outperformed the market over the past one month till 31 December 2012, rising 12.35% compared with the Sensex's 0.45% rise. The scrip had, however, underperformed the market in past one quarter, falling 7.44% as against Sensex's 3.54% rise.
The small-cap company has an equity capital of Rs 808.72 crore. Face value per share is Rs 10.
Directorate-General of Civil Aviation chief Arun Mishra was quoted by media as saying that Kingfisher Airlines' flying permit has lapsed. The company failed to provide additional details on the funding of operations, Mishra added, referring to Kingfisher Airlines' (KFA) revival plan submitted to the Directorate General of Civil Aviation (DGCA) in December 2012.
Despite the expiry of its license, KFA clarified after market hours on Monday, 31 December 2012, that there is no cause for concern as the regulations permit license renewal within two years of expiry. KFA is confident of securing approval from the DGCA on the restart plan, license approval and reinstatement of its Air Operator Permit (AOP), the company added.
KFA said in statement that it applied for renewal of its license as a scheduled carrier. Subsequently, KFA submitted a restart and rehabilitation plan to the DGCA and also attended meetings to respond to queries. The plan itself clearly states that the funding required would be provided by the UB Group. The DGCA has asked for certain no objection letters, which are in the process of being procured. Further, a few additional questions have been raised, which will be answered to the regulators satisfaction, the company said.
KFA, which has been grounded since October 2012, submitted revival plan to DGCA in December 2012 in a bid to revive its licence. However, the DGCA had rejected the request as the company had not submitted a financial revival plan.
The regulator had suspended KFA's permit in October 2012 following flight disruptions after employees walked out over non-payment of salaries.
On 12 December 2012, KFA said its board has been deliberating various alternatives to improve the financial position of the company in the best interest of all stakeholders. In this connection, it has been advised that a fresh infusion of capital by a financial or strategic, Indian or non-resident investor is a possible alternative, the company said. The board appreciates that foreign investment (other than investment from NRI) in the company is regulatorily capped at 49%.
With a view to keeping the company's capital structure in readiness for transactions that may be identified in the future for the benefit of all stakeholders of the company, the board has, at its meeting held on 12 December 2012 decided and passed a resolution that with immediate effect and in accordance with the Foreign Exchange Management Act 1999 and the Companies Act, 1956, no FII, Qualified Foreign Investor or other non-strategic foreign investment (excluding investment by NRI) shall be permitted in the company beyond its current level of 3% or such other percentage that the board may decide from time to time under intimation to the stock exchanges. This restriction will be valid till such time as the board may decide from time to time which shall he intimated to the stock exchanges appropriately, Kingfisher Airlines said in a statement.
Appropriate steps are being undertaken to intimate the Reserve Bank of India (RBI) about the board's decision and to seek consequent measures and also to seek any other approvals that may be considered necessary to give full effect to this decision, KFA said.
KFA, on 11 December 2012, said that the company is currently in discussion with various investors, including Etihad Airways, for equity investments in the company. However, no agreement has been reached either with Etihad or any other airline and the matters are merely at negotiation stages, KFA said. The company issued this clarification after media reports suggested that Etihad Airways is set to buy stake in KFA.
KFA reported a net loss of Rs 753.55 crore in Q2 September 2012, higher than net loss of Rs 468.67 crore in Q2 September 2011. Net sales fell 87.1% to Rs 200 crore in Q2 September 2012 over Q2 September 2011.
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